Project management a managerial approach chapter 01

Project Management: A
Managerial Approach
Chapter 1 – Projects in
Contemporary Organizations
© 2006 John Wiley


Overview
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Project Management Growth Factors
Project Aspects
Project Criteria
Project Life Cycle
Project Management Profession

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Project Management Emergence
• Explosion in human knowledge
• Mass customization of products and services
• Expansion of global markets

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Forces Of Project Management
• Forces driving Project Management:
– 1. exponential expansion of human knowledge
– 2. growing demand for a broad range of complex,
sophisticated, customized goods and services
– 3. evolution of worldwide competitive markets for the
production and consumption of goods and services

• Team-based problem solving v. individual

© 2006 John Wiley


The Professionalism of Project
Management
Complexity of problems facing the project manager

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• Growth in number of project oriented organizations
– The Project Management Institute (PMI) was established in
1969
– By 1990 it had 7,500 members
– 1995, over 17,000 members
– 1998--exploded to over 44,000 members
• This exponential growth is indicative of the rapid growth in the
use of projects
• Importance of PMI as a force in the development of project
management as a profession
© 2006 John Wiley

Project Management Institute:
Membership Growth Curve

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Organizational Imperatives
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Traditional hierarchical management declining
Consensual management increasing
Increasing reliance on systems engineering
Projects integral to organizational strategy

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The Definition of a “Project”
• Must make a distinction between terms:
– Program - an exceptionally large, long-range objective
that is broken down into a set of projects
– Task - set of activities comprising a project
– Work Packages - division of tasks
– Work Units - division of work packages

• A specific, finite task to be accomplished

© 2006 John Wiley


Project Management
A Working Definition
• Project:
– A problem with a known solution scheduled for
completion—unique and non-routine activities

• Project Management:
– The science and art of solving the problem within
predetermined time and resource parameters
– Shouldering just enough risk to escape with your career
intact!!!

© 2006 John Wiley


Characteristics of a Project
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Have a supported purpose/importance

Performance specifications (form, fit, function)
Known (bounded) solution
Have a life cycle with finite due date
Interdependencies
Uniqueness
Resource requirements and tradeoffs
Stakeholder Conflict

© 2006 John Wiley


Quasi-Projects and Fuzzy Goals
• Tasks without Specific Targets
– No Who, What, When, Where, How Much

• Implied Performance, Cost, Time Constraints
• “Projects” to Determine Project Scope
• Warning: If these Become Projects, Expect Delays,
Cost Overruns, Dissatisfied Customers

© 2006 John Wiley


Objectives of a Project
• Project Objectives:
– Performance
– Time
– Cost

• Expectations of clients inherent part of the project

specifications

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Objectives of a Project
• 3 Project Objectives:

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Why Project Management?
• Companies have experienced:
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Better customer relations
Shorter overall delivery times
Lower costs and higher profit margins
Higher quality and reliability
Higher worker morale

© 2006 John Wiley


Why (not) Project Management?
• Companies have also experienced some negatives:

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Greater organizational complexity
Increased likelihood of organizational policy violations
Higher costs
More management difficulties
Low personnel utilization

© 2006 John Wiley


The Project Life Cycle
• Stages of a Conventional Project:
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Slow beginning
Buildup of size
Peak
Begin a decline
Termination

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The Project Life Cycle

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The Project Life Cycle
• Projects also exist which do not follow the
conventional project life cycle
• Comprised of subunits that have little use as a stand
alone unit, yet become useful when put together

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The Project Life Cycle
• Time distribution of project effort is characterized by slowrapid-slow

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Project Management Life Cycle
Planning

Implementation

Delivery

Level of effort

Definition

1. Goals
2. Specifications
3. Scope
4. Responsibilities
5. Teams

1. WBS
2. Budgets
3. Resources
4. Risks
5. Schedule

1. Status reports
2. Change Orders
3. Quality Audits
4. Contingencies

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1. Train user
2. Transfer documents
3. Release resources
4. Reassign staff
5. Lessons learned


Proactive Project Life Cycle

High
Level
of
Value
of
Effort

Project Manager Roles and Responsibilities
Change Management System
Closed-Loop Planning-Monitor-Control System
Project Evaluation (Audit) Process

Low
Define
Scope
Tradeoffs

Plan

Implement

Delivery

WBS/OBS/Schedule Resource (Re)allocation “Learn Curve”
Detailed Budget
Cost Containment
Final Report

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The Project Life Cycle
• Unlike the more conventional life cycle, continued inputs of effort at the
end of the project produce significant gains in returns

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Projects in Contemporary
Organizations

Figure 1-3
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Projects in Contemporary
Organizations

Figure 1-4
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Projects in Contemporary
Organizations

Figure 1-5
© 2006 John Wiley